Not everyone is a big fan of leverage investing using a margin the account. It is probably not coincidental that some of these detractors of margin financing also tend to employ a war-chest when describing their investing strategy. In my opinion, margin investing and the employment of a war-chest are two extremes in investing. Much like Law and Chaos in Michael Moorcock fantasy novels. When you invest using leverage, you are trying to magnify your returns by borrowing money. If the cost of borrowing runs below the rate of return of the unleveraged portfolio, you are likely to succeed in getting better returns provided if the underlying investments generate positive returns. The problem of a leveraged portfolio is that there is a chance of complete and utter ruin, which to me is the odds of a margin call. In essence, you are trying to get higher expected return by flirting ......